Financials: Sept. Bonds are currently 1'08 lower at 122'31. We continue to hold the combination of short Bonds and short the Sept. Bonds puts with a strike price of 120'00 or lower. Friday also gave the opportunity to put on the long 5 Yr. Note/ short 10 Yr. Note spread which is working for about 10 points this morning. If you were only looking for a short term trade with this spread, take profits.
Grains: On Friday Beans were 11 cents higher, Corn 6 higher and Wheat 7 higher. Over night Beans were 3 higher, Corn about unchanged and Wheat 6 higher. A weaker Dollar over the last few sessions has supported the Grains. If you remain long July Corn and/or Beans, raise your protective sell stop to 342'0 in Corn and 939'0 in Beans or take profits. We remain long out of the money call spreads in Nov. Beans and short the Sept. Corn 340'0/420'0 strangle. If this strangle trades below 15'0 today take profits.
Cattle: On Friday Live Cattle closed 50+ lower and Feeder Cattle slightly lower. Higher feed grain prices put a bit of pressure on the market. We remain long Aug. Live Cattle with a protective sell stop at 86.50.
Silver: July Silver is currently 25 cents higher at at 18.48. Once again this market is testing resistance in the 18.40 area. I am on the sidelines.
S&P's: Sept. S&P's are currently 9.50 higher at 1094.50. A weaker Dollar is helping bouy equitiy prices this morning. I feel the market is now in resistance and I am once again returning to the short side of the market. Resistance for the Sept. S&P's is currently the 1095.00 -1104.00 area. Neat term support is currently 1078.00.
Currencies: As of this writing the Sept. Euro is trading 157 higher at 1.2241, the Swiss 93 higher at .8803, the Yen 34 lower at 1.0902 and the Pound 226 higher at 1.4738. The Sept. Dollar Index is 106 lower at 86.55. I feel that it is once again time to start looking at the short side of the Euro and the Pound. Resistance for the Euro is above the 1.2260 level and resistance in the Pound is in the 1.4850 area.